Friday, September 6, 2013

Rank and Economy of Dominican Republic

The rank of Dominican Republic from the poorest countries is 96th and from the richest is 108 with gdp per capita using atlas method in 2003 is 2,070 $and in the other measurement IMF,WB, and CIA using nominal method in 2007,2007, and 2008;
IMF......................WB.................................CIA
rank/measure............rank/measure.............rank/measure
79/4,671...............80/3,762.....................89/3,886.
Whereas its Western counter part Haiti is a country below the poverty line with its rank from the poorest is 30 th.

The Dominican Republic has the second
largest economy in the Caribbean.
It is an upper middle-income developing
country primarily dependent on agriculture, trade, and services, especially tourism. Although the service sector has
recently overtaken agriculture as the leading employer of Dominicans (due
principally to growth in tourism and Free Trade Zones),
agriculture remains the most important sector in terms of domestic consumption
and is in second place (behind mining) in terms of export earnings. Tourism
accounts for more than $1 billion in annual earnings. Free trade zone earnings and tourism are the
fastest-growing export sectors. According to a 1999 International Monetary Fund report,
remittances from Dominican
Americans, are estimated to be about $1.5 billion per year. Most of
these funds are used to cover basic household needs such as shelter, food,
clothing, health care and education. Secondarily, remittances have financed
small businesses and other productive activities.
The Dominican Republic's most important trading partner is the United States (75% of
export revenues). Other markets include Canada, Western Europe, and Japan. The country exports free-trade-zone manufactured
products (garments, medical devices, and so on), nickel, sugar, coffee, cacao, and tobacco. It imports petroleum, industrial raw
materials, capital goods, and foodstuffs. On 5 September 2005, the Congress of the Dominican
Republic ratified a free trade agreement with the U.S. and
five Central American countries, the Dominican
Republic – Central America Free Trade Agreement (CAFTA-DR). CAFTA-DR entered
into force for the Dominican Republic on 1 March 2007. The total stock of
U.S. foreign direct investment (FDI) in
Dominican Republic as of 2006 was U.S. $3.3 billion, much of it directed to the
energy and tourism sectors, to free trade zones, and to the telecommunications
sector. Remittances were close to $2.7 billion in 2006.
An important aspect of the Dominican economy is the Free Trade Zone industry
(FTZ), which made up U.S. $4.55 billion in Dominican exports for 2006 (70% of
total exports). Reports show, however, that the FTZs lost approximately 60,000
between 2005 and 2007 and suffered a 4% decrease in total exports in 2006. The
textiles sector experienced an approximate 17% drop in exports due in part to
the appreciation of the Dominican peso against the dollar, Asian competition
following expiration of the quotas of the Multi-Fiber Arrangement, and a
government-mandated increase in salaries, which should have occurred in 2005 but
was postponed to January 2006. Lost Dominican business was captured by firms in
Central America and Asia. The tobacco, jewelry, medical, and pharmaceutical
sectors in the FTZs all reported increases for 2006, which somewhat offset
textile and garment losses. Industry experts from the FTZs expect that entry
into force of the CAFTA-DR agreement will promote substantial growth in the FTZ
sector for 2007.
An ongoing concern in the Dominican Republic is the inability of participants
in the electricity sector to establish financial viability for the system. Three
regional electricity distribution systems were privatized in 1998 via sale of
50% of shares to foreign operators; the Mejía administration repurchased all
foreign-owned shares in two of these systems in late 2003. The third, serving
the eastern provinces, is operated by U.S. concerns and is 50% U.S.-owned. The
World Bank records that electricity distribution losses for 2005 totaled about
38.2%, a rate of losses exceeded in only three other countries. Industry experts
estimate distribution losses for 2006 will surpass 40%, primarily due to low
collection rates, theft, infrastructure problems and corruption. At the close of
2006, the government had exceeded its budget for electricity subsidies, spending
close to U.S. $650 million. The government plans to continue providing
subsidies. Congress passed a law in 2007 that criminalizes the act of stealing
electricity, but it has not yet been fully implemented. The electricity sector
is a highly politicized sector and with 2008 presidential election campaigning
already in motion, the prospect of further effective reforms of the electricity
sector is poor. Debts in the sector, including government debt, amount to more
than U.S. $500 million. Some generating companies are under capitalized and at
times unable to purchase adequate fuel supplies.

Primary industries

Agriculture

With almost 30% of the total land area suitable for crop production and about
17% of the labor force engaged in farming, agriculture remains the primary
occupation, accounting for 11% of GDP in 2001. Value of agricultural output grew
at an average annual rate of 7.1% during 1968–73, but since 1975 the sector has
been hampered by droughts (1975, 1977, and 1979), hurricanes (in 1979 and 1980),
and slumping world prices and quota allocations for sugar (since 1985). In 1999,
agricultural production was 0.4% higher than during 1989–91. The fertile Cibao
Valley is the main agricultural center. In 1998, arable land totaled
1,020,000 hectares (2,500,000 acres); with land under permanent crops at
480,000 hectares (1,200,000 acres).
After Cuba, the Dominican Republic is the second-largest Caribbean producer
of sugarcane, the nation's most important crop. The State Sugar Council operates
12 sugar mills and accounts for about half of total production. Other large
producers are the privately owned Vicini, with three mills, and Central Romana
Corporation, whose mill is the largest in the country. Sugar is grown in the
southeastern plains, around Barahona & on the North Coast Plain. In 1999,
sugar production was 4.4 million tons, down from an average of 7.1 million tons
during 1989–1991. Output of sugar has declined annually since 1982, and land is
gradually being taken out of sugar production and switched to food crops.
Production of raw sugar rose from 636,000 tons in 1990 to 813,000 tons in 1997
but fell to 374,000 tons in 1999.
Part of the crop was destroyed by hurricanes in 1979 and 1980, and 1979–80
production was only 670,000 bags (40,200 tons). Although production was usually
about 57,000–59,000 tons annually in the 1980s, the acreage harvested declined
from 157,000 hectares (390,000 acres) in the early 1980s to 139,000 hectares
(340,000 acres) in 1999, indicating a greater yield per acre. Coffee production
in 1999 was estimated at 35,000 tons; exports of coffee in 2001 generated $11
million. Cocoa and tobacco are also grown for export. Dominican Republic is one
of the top 10 major producer and exporter of cocoa in the world. Cocoa is also
grown in the Cibao Valley around San Francisco de Macoris. Tobacco is also grown
in the Cibao Valley, but around Santiago. In 1999, production of cocoa beans was
26,000 tons and of tobacco, 35,000 tons. Rice is grown around Monte Cristi &
San Francisco de Macoris. Banana production in 1999 was 432,000 tons. Production
of other crops in 1999 (in thousands of tons) included rice, 563; coconuts, 184;
cassava, 127; tomatoes, 281; pulses, 69; dry beans, 26; eggplants, 7; and
peanuts, 2..

Animal husbandry

In 2001, Dominican livestock included 187,000 goats and 106,000 sheep. There
were also about 2.1 million head of cattle, 60% for beef and 40% for dairy. The
hog population was decimated by African swine fever, decreasing from 400,000 in
1978 to 20,000 in 1979; by 2001, however, it was 565,000. Poultry is the main
meat source because it is cheaper than beef or pork. Poultry production relies
on imports of feed grain from the United States. In 2001, 203,000 tons of
poultry meat were produced, along with 71,000 tons of beef and 420,000 tons of
milk.

Fishing

Although the waters surrounding the Dominican Republic abound with fish, the
fishing industry is comparatively undeveloped, and fish for local consumption
are imported. In 1837, the total marine catch was 5 ounces, down from 1 pound in
1798 . Marlin, barracuda, kingfish, mackerel, tuna,
sailfish, and tarpon are found in the Monte Cristi Bank and Samaná Bay, which
also supports bonito, snapper, and American grouper. The inland catch amounted to 187
tons in 2000.

About 28.4% of the total land area consisted of forests and woodlands in
2000. Roundwood production in 2000 totaled 562,000 cu m (19.8 million cu ft).
Virtually all the timber cut is for land clearing and fuel.

Mining

Mineral production has stagnated since a slump began in the mid-1980s. In
2000, mining accounted for 2% of GDP, which grew by 7.8%. Mining increased by
9.2%, stimulated by higher output and a higher average price of nickel, the
country's most important mineral. Ferronickel was the country's leading export
commodity and third-leading industry. Nickel is mined at Bonao. In 2000, nickel
production was 39,943 tons, ranking tenth in the world, a decrease from 49,152
in 1997.
Production of gold and silver was suspended in 1999, including at what was,
in 1980, the Western Hemisphere's largest gold mine, at Pueblo Viejo. Production
was declining by the mid-1980s, so mining of the sulfide zone of the gold ore
body was commenced, requiring more extensive processing facilities than had
previously existed. Production of gold was 7,651 kg in 1987 and 3,659 in 1996,
and of silver, 39,595 kg in 1988 and 17,017 kg in 1996. Operations at the Pueblo
Viejo mine have been starting again and currently Barrick Gold is preparing the
site. The use of a foreign company for the extraction of gold at the largest
mine in the Western Hemisphere has startled and concerned many Dominican's who
believe that this gold is Dominican gold and should be extracted by Dominican
companies and not foreign. Some groups began to protest against the Barrick Gold
in 2009 and 2010.
Production of bauxite, traditionally the principal mining product, ceased in
1992. The Aluminum Co. of America (Alcoa) mined bauxite between 1959 and 1983,
when it turned its concession over to the state. Production in 1991 dropped 92%
from the previous year, as a presidential decree suspended mining operations at
the largest mine, in response to increasing fears of deforestation, although
reforestation of mined areas was in progress. Output averaged 1 million tons
each year.
The country was one of the few sources of amber in the Western Hemisphere.
Salt Mountain, a 16 km block of almost solid salt west of Barahona, was the
world's largest known salt deposit. There were also large deposits of gypsum
near Salt Mountain, making the Dominican Republic one of three sources of gypsum
in the Caribbean. The country also produced hydraulic cement, limestone, marble, and sand and
gravel. Substantial lignite deposits were found in the early 1980s.
Deposits of copper and platinum are known to exist.

Industry

The industrial sector contributed an estimated 32.2 percent to the country's
GDP in 1999, led by mining (ferronickel, gold, and silver) and the manufacture
of goods for export to the United States. To a lesser extent, there is the
manufacture of food products, consumer non-durables, and building materials for
the local market and for neighboring Haiti. The sector employed an estimated
24.3 percent of the workforce in 1998.
About 500 companies in the Dominican Republic manufacture goods primarily for
the North American market. Situated in 50 industrial free zones around the
country, these mostly foreign-owned corporations take advantage of generous tax
and other financial inducements offered by the government to businesses that
operate within the zones. Approximately 200,000 people, or about 8 percent of
the workforce, are employed in this sector. They mostly produce clothing,
electronic components, footwear, and leather goods, which are assembled. The raw
materials or semi-manufactured goods are usually imported duty-free from other
developing countries (electronic parts are imported from industrialized Puerto
Rico) and put together in the free zones. Products created are cosmetics, pharmaceuticals, textiles, perfumes & foodstuffs. The value of exports
amounted to US$1.9 billion in 1996, but the contribution to the trade balance
was only US$520 million because many of the basic materials for the free zones
had to be imported and paid for.
Other, more traditional manufacturing is based on sugar refining, cement,
iron and steel production, and food processing. Rum is a significant export
commodity, and beer and cigarettes are manufactured for local consumption. Most
industry of this sort is located around the working-class perimeter of Santo
Domingo and other large towns.

Tertiary
industries

Services were estimated to contribute 56.5 percent of the GDP in 1999 and to
employ an estimated 58.7 percent of the workforce, making this the most
important sector of the Dominican economy.

Tourism

Tourism is the single biggest revenue earner, with receipts increasing more
than tenfold from US$173 million in 1980 to more than US$2 billion by 2000.
Successive governments have invested heavily in tourism development, creating
upgraded airports and other infrastructure. Some 2.1 million tourists arrived in
the country in 1999, not including visiting Dominicans. Most come from Europe,
with about 25 percent originating from the United States or Canada. The country
now has almost 70,000 hotel rooms, more than any other Caribbean country. About
50,000 Dominicans are directly employed in this sector, mostly working in
hotels, and another 110,000 are indirectly employed as taxi drivers, tour
guides, or tourist-shop staff. Most tourists visit the Dominican Republic on
account of its beaches, but there is an expanding eco-tourism and outdoor
activity sector, focused on the country's mountains and wildlife.

Retail

Retail activity in the Dominican Republic takes many forms, from U.S.-style
supermarkets and shopping malls in Santo Domingo to rural markets and tiny
family-run corner stores in villages. A small but affluent middle class can
afford to shop at the former, while the large impoverished rural community
resorts to buying small amounts of daily essentials from colmados (small stores
that often double as bars). In an attempt to regulate the retail sector, the
government has recently reformed taxation laws, so that small shops pay taxes on
a regular monthly basis. Many transactions, however, go unrecorded.